The House of Representatives ad-hoc committee examining the economic, regulatory, and security impacts of cryptocurrency and point-of-sale (POS) operations has faulted the Securities and Exchange Commission’s (SEC) proposed N1 billion minimum capital requirement for Virtual Assets Service Providers (VASPs).
Gatekeepers News reports that at a technical session held in Abuja on Monday, the committee, led by Olufemi Bamisile, described the requirement as too high and prohibitive, warning that it could hinder innovation and discourage young entrepreneurs from participating in the digital economy.
The lawmakers acknowledged the need for regulation but said the current threshold might stifle innovation, discourage legitimate investors, and exclude emerging entrepreneurs, particularly young Nigerians who hold the potential to drive economic growth and digital transformation.
They urged the SEC to reconsider the figure and make it more accessible and inclusive to encourage broader participation.
During the meeting, Economic and Financial Crimes Commission (EFCC) revealed that it currently holds all seized digital and virtual assets linked to criminal activities in secured wallets across its zonal offices. The committee directed the EFCC to submit detailed records of the confiscated assets to aid its policy review process.
Bamisile reaffirmed the panel’s goal of designing a balanced framework that ensures regulatory oversight without stifling growth, while also promoting transparency, youth inclusion, and national security in Nigeria’s digital finance space.
The committee, however, expressed disappointment over the absence of key institutions including Central Bank of Nigeria (CBN), Office of the National Security Adviser, the Federal Inland Revenue Service (FIRS), Nigerian Communications Commission (NCC), and the ministries of finance and communications.
The lower house of assembly further urged the institutions to take the digital finance sector’s growing security and economic implications seriously.
